UIT Deposits Slid in June

July 26, 2002 (PLANSPONSOR.com) - Deposits to unit
investment trusts totaled $923.8 million in June, down from
the previous month's $957.9 million, but a substantial
decrease from a year earlier when deposits were $1.29
billion.

According to data compiled by the Investment Company
Institute (ICI), deposits to equity trusts totaled $722.8
million in June, compared with $1.13 billion in June
2001.

Tax-free bond trusts issued shares in June with deposits
of $140.3 million, compared with $125.9 million a year
previously. Shares issued in June by taxable bond
trusts reached $60.6 million, compared with $36.9 million
in June 2001.

There were 53 new trusts issuing shares in June
including 22 equity trusts, 26 tax-free bond trusts, and
five taxable bond trusts.

In terms of maturity, long-term bond trusts having an
average weighted maturity of more than 15 years were the
most commonly offered in June, with $164.6 million in
shareholder deposits.
Unit investment trusts, or UITs, are investment companies
that purchase fixed portfolios of selected stocks or bonds,
and hold them through a stated termination date.

“Units” in the trust are sold to investors, who receive
a share of principal and interest, or dividends depending
on the underlying investments. Fixed income UITs pay
monthly income in contrast to bonds that only pay income
semiannually or annually.